Rishi Sunak has defended his block on spending to ease the cost of living crisis, arguing it would force up mortgage bills which would be wrong for “our kids”.

       Government borrowing would rise, which would mean higher interest and mortgage rates, if he gave way to pressure to turn on the spending caps, the chancellor insisted.

       Mr Sunak has been accused of refusing to help families hit hardest by soaring inflation and everyday bills, in order to store up pre-election tax cuts for voters in 2024.